Here are four key Social Security facts to be aware of in 2024:
- 3.2% Cost-of-Living Adjustment: Social Security benefits will see a 3.2% cost-of-living adjustment in 2024, aimed at keeping up with inflation. This results in monthly increases for retirees, with the typical retired worker receiving a $59 raise.
- Changes in Full Retirement Age: For individuals born in 1957, full retirement age is 66 and six months. Those born between January 1958 and April 1958 will have a higher full retirement age of 66 and eight months, requiring them to wait longer to receive full benefits.
- Increased Maximum Benefits: The maximum Social Security benefit for high-income earners retiring in 2024 is higher than in 2023. For example, those claiming at age 62 in 2024 have a maximum benefit of $2,710, up $56 from the previous year.
- Higher Payroll Taxes for Top Earners: Social Security payroll taxes for high earners will increase, with taxes charged on up to $168,600 of wage income in 2024. This represents an increase of $8,400 from 2023, potentially leading to higher withholding for high-earning employees and self-employed workers.
Being informed about these changes is essential to make the most of Social Security benefits in 2024 and beyond. Keep track of your Social Security throughout retirement to ensure you receive the financial support intended by the program.
